Apple and Google subscription debate is missing the point

The current discussion surrounding the proposed pricepoints put forward by Apple and Google is ignoring the wider issues that should be considered by content providers when seeking a payments partner.

Stephen Petheram, marketing director of MGt-backed PayWizard, acknowledges Apple’s 30% take is high, but says the debate is ignoring the attributes needed from a long-term payments partner. “A robust and scalable digital payments system is a necessity for any new media player, but settling for this basic set of requirements is rather outdated and ignores the significantly greater rewards that can come from initiating a long-term relationship with an end-to-end, independent digital media payment solutions provider.”

Petheram believes the payment systems put in place by Apple and Google provide nothing more than a basic service for an inflexible and device-specific world. “Giving today’s consumers what they want necessitates the creation of bundles and pricing packages to monetise content in exciting, friction-free ways. Full, real-time and ‘actionable’ transaction information must be passed back from the payment solution into the business to inform market-led and targeted discounts and allow offers to be deployed intelligently to increasingly sophisticated consumers across multiple devices”.

Apple is offering publishers the same payment system already used for its apps and in-app purchases for a chosen subscription period. By contrast the Google One Pass will be available for mobile apps and websites across subscriptions, metered access, “freemium” content and single article sales. Google’s 10% commission is significantly less than proposed by Apple.

“A partner should enable all the current commercial models from the outset, and must be committed to adapting quickly and flexibly along the route to continue to optimise opportunities as they arise – providing a truly future-proofed solution,” says Petheram.

PayWizard was launched in September to support the evolving number of screens being used by content providers. It centres around a pre-paid e-wallet that securely supports micropayment transactions in multiple currencies. It rivals the Neovia Payment Network.

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About Julian Clover

Julian Clover is a Media and Technology journalist based in Cambridge, UK. He works in online and printed media. Julian is also a voice on local radio. You can talk to Julian on Twitter @julianclover, on Facebook or by email at jclover@broadbandtvnews.com.

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